The allure of a holiday—the escape from the daily grind, the promise of adventure, and the chance to create memories that last a lifetime—gives us something to look forward to every single time.
However, in the excitement of planning that dream getaway, it’s all too easy to let the budget slip through our fingers like sand on a beach. Many of us unknowingly spend too much on expenses that we can actually skip.
So before you plan your next holiday, practice a little foresight and some strategic planning. To help you, here are the five common money traps to be mindful of and how to avoid them.
1. Relying on taxis instead of navigating public transport
Rethink your ride. When you’re navigating the unfamiliar streets of a new city, the convenience of a taxi can be incredibly appealing. But convenience comes at a cost, and those fares can quickly add up, leaving your wallet significantly lighter.
Before you jet off, take some time to research the public transport options available at your destination. Download maps, familiarise yourself with routes, and perhaps even purchase transport passes in advance. Not only will this save you money, but it’s also a fantastic way to immerse yourself in the local culture.
If you’re staying in a central location, you might find that many attractions are just a pleasant stroll away—good for your health and your pocket.
2. Going overboard on buying souvenirs
We’ve all been there—caught up in the moment where we find ourselves purchasing an array of souvenirs, from magnets and snow globes to t-shirts that will likely end up tucked away.
To avoid the trap of souvenir overload, set a budget before you leave and consider withdrawing that amount in the local currency. This tangible limit will help you think twice about whether you really need another souvenir.
Cherish memories, not trinkets. Remember, the best souvenirs are often the stories you bring back, not the stuff.
3. Overspending on flights and accommodations
Flights and accommodation are the twin pillars of any travel budget, and they can also be the most expensive. However, there’s a secret weapon in the budget traveller’s arsenal: package deals. By bundling flights and accommodation, you can often find significant savings.
Look for companies that offer packages that include little luxuries, such as complimentary activities or happy-hour specials, without the luxury price tag. Don’t be afraid to spend some time comparing deals or even calling in the experts to help you find the perfect holiday package.
4. Paying unnecessary extra charges on top of your bill
The modern traveller is all too familiar with the array of fees that can accompany a holiday. From luggage fees to credit card charges, these additional costs can sneak up on you. If you can, consider travelling with just a carry-on, embracing the minimalist approach to packing. Not only will this save you luggage fees, but it will also make getting around easier.
Additionally, be mindful of transaction fees when using your card abroad. Check with your bank for international charges and consider using a travel card or a credit card with no foreign transaction fees to keep more money in your holiday fund.
5. Eating out for every single meal
Eating out for every meal can quickly become one of the most expensive aspects of a holiday. To keep costs down, look for accommodation options that include a complimentary breakfast or have kitchen facilities where you can prepare simple meals.
Decide in advance which meals you’ll eat out, allowing you to splurge on a few special dining experiences rather than overspending on every meal. This approach not only saves money but also gives you the flexibility to enjoy the local cuisine when it truly matters.
Remember, the key to a budget-friendly holiday is planning. By being aware of these common pitfalls and taking steps to avoid them, you can enjoy your well-deserved break without the stress of an overstretched budget.
We’d love to hear from you—what are your top tips for saving money while on a holiday? Share your wisdom in the comments below and help your fellow travellers in the YourLifeChoices community make the most of their getaways.
Also read: When is the best day to travel? Debunking myths for big savings
Point number 1 could have cost us dearly when we were in New Zealand end of 2023. In Auckland we caught a taxi from our ship to the Auckland Museum and were happy with the $28NZ fare. On the return journey with a different taxi I was watching the meter and was surprised that when it reached $30 we were nowhere near the harbour. I was holding $50NZ in my hand ready to give to the driver and was amazed as the meter kept climbing. I said to the driver how we had only paid $28 to get to the museum and his reply was “Yes, but we aren’t regulated like taxis in Australia, we set our own rates.” By the time he dropped us off at the port precinct the meter was showing $65. I handed him the $50 and said sorry mate, that’s all you’re getting and walked away. Message is , be careful when catching taxis in NZ.
Public transport in a strange town is not an option for those of us with mobility issues.